Footwear and accessories discount retailer Designer Brands (NYSE: DBI) will be reporting earnings tomorrow morning. Here’s what to expect.
Designer Brands missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $713.6 million, down 5.4% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations.
Is Designer Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Designer Brands’s revenue to decline 1.8% year on year to $732.9 million, a deceleration from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at -$0.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Designer Brands has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Designer Brands’s peers in the footwear retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Shoe Carnival’s revenues decreased 7.5% year on year, missing analysts’ expectations by 1.7%, and Boot Barn reported revenues up 16.8%, falling short of estimates by 0.9%. Shoe Carnival traded up 4.8% following the results while Boot Barn was also up 16.5%.
Read our full analysis of Shoe Carnival’s results here and Boot Barn’s results here.
There has been positive sentiment among investors in the footwear retailer segment, with share prices up 3.4% on average over the last month. Designer Brands’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $4.25 (compared to the current share price of $3.82).
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